Business Studies

The case has the description of the situation, and description of the data collected so you can understand the analysis output. Review my Statistics Summary (Ball, 2005) Download Statistics Summary (Ball, 2005)along with any other statistics resources you like, and study the output of the Glenco SPSS analysis Download output of the Glenco SPSS analysis. Note that some of the analysis in the output may be nonsense or not necessary, so explicitly decide what is relevant in making your decisions. explain (a) the major problem posed in the case and (b) how you used the statistical analyses provided to (c) come to recommendations for improvements. Explain what you relied on from the output and what you thought was not needed.

ANSWER

Glenco Company Bonus Program

Glenco is a company is a moderate-sized manufacturing company. It has been facing the challenge of workers’ absenteeism, therefore, firing very many workers annually. The company’s management decided to come up with a new incentive bonus program where the top-performing workers would be rewarded if they met a certain set target. This paper will discuss how the incentive bonus program can help the company work smarter and how they can sort out the major problems; worker absenteeism and competition from other companies.

Worker absenteeism results in slow growth and improvement of a company. This causes diminishing marginal returns or decreasing marginal returns. A company that is fond of firing workers will lead to extra costs required in the hiring and training of new workers. This, in turn, pulls the company backward because the new employees are not familiar with the production trend of the company.

The statistical analysis provided shows that the marginal returns of the company have been increasing after the incentive bonus program was initiated. Workers’ absenteeism has also been reduced. This, therefore, shows that this program has helped the company solve its major problem. I, therefore, recommend that the company should continue giving bonuses to workers who perform to the company’s expectations and this will lower workers’ absenteeism. I relied on the statistical analysis to come up with these recommendations. The program has worked effectively because it has made positive changes in the company. What was not needed is firing workers from the company because this pulls the company backward.

In conclusion, this program of giving bonuses to top performers in a company should be practiced by all companies to motivate the workers to work harder and enable them to have the morale for work. Though this program can work there are still people who don’t prefer it.